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Tips from a Founder that Raised $33.5M, Decide if You Want it Bad Enough - Tactician #0069

March 01, 2024

"'To raise $33.5 million, you have to believe in what you're doing,' says the founder. I believed in my ability to nap anywhere, anytime, but no one's writing checks for that. Maybe I need to nap more aggressively or in front of richer people."

01/03/24

Tips from a Founder that Raised $33.5M

Why Read (5-7 minutes):

  • Gain practical insights on investor engagement, storytelling, remote work culture, and effective hiring, crucial for business success.

Author:

  • Turner Novak, Investor at Banana Capital

Link: 

Key Concepts and Tactics:

  • On Fundraising and Investor Interaction:

    • Insight: Understand and address the first question an investor asks post-pitch; it's likely the main concern or objection they have regarding your startup.

    • Quote: "The hack is, they always do tell you why they're not investing if you know how to listen for it. And the reason why they're not investing is the first question that they ask. Whatever that question is, that's what they were thinking about while you were talking, and that's the objection."

  • On Storytelling and Communicating Your Startup's Vision:

    • Insight: Craft a compelling narrative that evokes emotions leading to investor interest, aligning the story across all facets of the company, including internal culture, product development, and marketing.

    • Quote: "The particular emotional journey I like to take people on, by the way, is go from amusement to curiosity to surprise to awe to greed. And so, I try to create a story that will generate those emotions… it's [the story] actually the central axis by which your company operates."

  • On Organizational Design and Remote Work:

    • Insight: Embrace flexibility in remote work, fostering a culture where results are prioritized over specific working styles or locations, and ensure regular in-person interactions to maintain team cohesion.

    • Quote: "We try to not be religious and prescriptive about how any one person chooses to work... Instead of focusing on a particular form and prescriptive work, because reality is whether it's remote work or any other best practice, the opposite of the best practice also works."

  • On Hiring and Team Building:

    • Insight: Focus on hiring individuals who not only align with the company's mission and values but also demonstrate a high degree of agency and the ability to contribute positively to the team's dynamics.

    • Quote: "My interview really is just like, 'What's your story?' It's actually literally just one question... What I'm looking for explicitly is we have some values at Runway, give a shit, build trust, create clarity, raise the bar... Does this person create clarity? Does this person give a shit about their work? And also what we do, and why we do it?"

Decide if You Want it Bad Enough

Why Read (4-5 minutes):

  • Gain insights on perseverance, reassessment, and strategic options for tough times in entrepreneurship.

Author:

  • Jason M. Lemkin, SaaStr Founder,

Link: 

Key Concepts and Tactics:

  • Consider Quitting If You Lack Commitment:

    • "Quit today if you don’t want it bad enough. But … never quit if you truly do... Now, by 'quit' I don’t literally mean leave the keys on your desk and quit today. Not if you have investors, customers, and employees at least. If you’re pre-everything, then sure, sure call it a day. But not immediately if you have any customers or investors."

  • Acknowledge the Difficulty of Being a Founder:

    • "But what I do mean it’s this stuff is hard. Being a founder is hard — harder than almost every non-founder realizes. And everyone, or at least almost everyone, has moments when they want to throw in the towel, at least sort of. That thought still crosses my mind from time to time, even now."

  • Take Time Off to Reassess Your Commitment:

    • "If you’re truly done, if you really don’t believe, if you can’t see it — first take a vacation for 2 weeks. See if you can get back to it. Maybe even take a few months. But eventually, 'quit' if you can’t do it anymore."

  • Options If Deciding to Move On:

    • "That may mean: Find a CEO to replace you, if you’re far enough along for that to make sense. Sell the company, if you can. This takes time, but worth a shot. Merge with a competitor, if you can. Support your co-founder 110%, if they want to keep going. Take care of your customers."

  • Persevere If You Still Believe:

    • "Now, having said that, if it’s hard, if you can’t quite see it. But if you still believe, push on: It took UiPath 10 years to get to $1m ARR. Today, they’re worth $12B+. Procore is worth $10B and it never really took off for years until mobile took off. Squarespace took years to get to $1B ARR."

  • Encouragement to Continue If There's Belief and Customer Support:

    • "If you truly believe, and have even a handful of happy customers, take a break, get your mojo back. But keep going."

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